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VW Pushes Deep Restructuring as CEO Warns 'More Than Critical'

Blume says tougher cuts are needed to close a cost gap, with management set to present concrete reorganisation proposals to staff next week.

Overview

  • Volkswagen CEO Oliver Blume has described the group’s situation as “more than critical” and says prior savings are insufficient to make the company competitive.
  • Management is preparing a sharper “Zielbild 2030” that could, as a working estimate, affect roughly 50,000 roles worldwide and has identified Emden, Hannover, Zwickau and Neckarsulm as sites without a clear competitive load for the 2030s.
  • The board will brief employees in a series of nine works meetings starting Aug. 25, with sessions in Wolfsburg, Emden and Zwickau and a later supervisory‑board review scheduled for early September.
  • Labour leaders reject closures: IG Metall chair Christiane Benner called the board’s targets unrealistic, ruled out plant shutdowns, and announced a nationwide action day for Sept. 21 if plans are not revised.
  • Zwickau faces near‑term cuts — headcount fell from about 11,000 to 8,000 and one production line is planned to close in 2027 — while the site is scaling a vehicle dismantling and reconditioning programme aimed at up to 1,000 staff and 15,000 cars a year by 2030.